Quote:
Originally Posted by ricecrispi
Capitalism is a rehash term...
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First, I am not even going to defend the merits of capitalism, history has already done that.
As to the issue of taxation. It is quite obvious you are missing the point. This is not necessarily about the middle class investing. I'll try and keep this simple as you obviously don't have a background in economics.
Every time Joe six-pack buys a beer he is paying salaries.
The farmer who grew the wheat
Miner who mined the aluminum
The people who manufactures farm equipment
The people who manufactures mining equipment
The miner who mines steal for the farm equipment and mining equipment
The woman who answers the phone at the mines and the other one at the plant the manufactures farm equipment
How about the guy who works for the petroleum company which makes the fuel and oil for the farm equipment and mine equipment
All the people who work at the electric company who provide power to the plants which manufacture farm equipment and mining equipment.
Then there are the people who work at the smelting plant for steal
How about the people who make the canning equipment for the brewery
Ok now we are on to the brewery itself....
I could go on but I think you get my point. Taxes reduce commerce because people have less to spend. Thus, the economy becomes less efficient the higher the tax burden.